Initiation of proceedings

(Case M.9489 – Air Canada/Transat)

(Text with EEA relevance)

(2020/C 180/01)

On 25 May 2020, the Commission decided to initiate proceedings in the abovementioned case after finding that the notified concentration raises serious doubts as to its compatibility with the internal market. The initiation of proceedings opens a second phase investigation with regard to the notified concentration, and is without prejudice to the final decision on the case. The decision is based on Article 6(1)(c) of Council Regulation (EC) No 139/2004 (1).

The Commission invites interested third parties to submit their observations on the proposed concentration to the Commission.

In order to be fully taken into account in the procedure, observations should reach the Commission not later than 15 days following the date of this publication. Observations can be sent to the Commission by fax (+ 32 22964301), by email to COMP-MERGER-REGISTRY@ec.europa.eu or by post, under reference M.9489 – Air Canada/Transat, to the following address:

European Commission

Directorate-General for Competition

Merger Registry

1049 Bruxelles/Brussel

BELGIQUE/BELGIË

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(1)  OJ L 24, 29.1.2004, p. 1 (the ‘Merger Regulation’).

Non-opposition to a notified concentration

(Case M.9461 – AbbVie/Allergan)

(Text with EEA relevance)

(2020/C 180/02)

On 10 January 2020, the Commission decided not to oppose the above notified concentration and to declare it compatible with the internal market. This decision is based on Article 6(1)(b) in conjunction with Article 6(2) of Council Regulation (EC) No 139/2004 (1). The full text of the decision is available only in English and will be made public after it is cleared of any business secrets it may contain. It will be available:

—	in the merger section of the Competition website of the Commission (http://ec.europa.eu/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

—	in electronic form on the EUR-Lex website (http://eur-lex.europa.eu/homepage.html?locale=en) under document number 32020M9461. EUR-Lex is the online access to European law.

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(1)  OJ L 24, 29.1.2004, p. 1.

Non-opposition to a notified concentration

(Case M.9780 — BNP Paribas/Bank of Baroda/JV)

(Text with EEA relevance)

(2020/C 180/03)

On 15 May 2020, the Commission decided not to oppose the above notified concentration and to declare it compatible with the internal market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004 (1). The full text of the decision is available only in English and will be made public after it is cleared of any business secrets it may contain. It will be available:

—	in the merger section of the Competition website of the Commission (http://ec.europa.eu/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

—	in electronic form on the EUR-Lex website (http://eur-lex.europa.eu/homepage.html?locale=en) under document number 32020M9780. EUR-Lex is the online access to European law.

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(1)  OJ L 24, 29.1.2004, p. 1.

OPINION OF THE EUROPEAN CENTRAL BANK

of 20 May 2020

on amendments to the Union prudential framework in response to the COVID-19 pandemic

(CON/2020/16)

(2020/C 180/04)

Introduction and legal basis

On 6 and 12 May 2020 the European Central Bank (ECB) received a request from the Council of the European Union and the European Parliament, respectively, for an opinion on a proposal for a Regulation of the European Parliament and of the Council amending Regulations (EU) No 575/2013 and (EU) 2019/876 as regards adjustments in response to the COVID-19 pandemic (1) (hereinafter the ‘proposed regulation’).

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union since the proposed regulation contains provisions affecting (1) the task of the European System of Central Banks (ESCB) to define and implement monetary policy in accordance with the first indent of Article 127(2) of the Treaty, (2) the ECB’s tasks concerning policies relating to the prudential supervision of credit institutions in accordance with Article 127(6) of the Treaty and (3) the ESCB’s contribution to the smooth conduct of policies pursued by the competent authorities relating to the stability of the financial system, as referred to in Article 127(5) of the Treaty. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

General observations

The unprecedented implications of the global crisis triggered by the coronavirus (COVID-19) pandemic have prompted public authorities globally to take swift and decisive actions aimed at ensuring that credit institutions can continue to fulfil their role in funding the real economy and are able to support economic recovery, notwithstanding the likely increasing losses they will face due to the crisis.

The ECB has made use of the supervisory flexibility permitted by the current legal framework to support credit institutions to keep providing credit to households, viable businesses and corporates hardest hit by the current economic fallout (2). In this regard the ECB provided temporary capital and operational relief (3) and announced further flexibility in the prudential treatment of loans backed by public guarantees (4). The ECB has also encouraged institutions to avoid excessive procyclical effects in the application of the International Financial Reporting Standard (IFRS) 9 (5), reduced temporarily the qualitative market risk multiplier to cater for the extraordinary levels of market volatility (6) and issued a recommendation on dividend distributions aimed at preserving capital resources within the banking system to enhance its capacity to support the real economy (7). These measures have represented a very significant support in addressing the current crisis, with important synergies between the ECB’s measures as a banking supervisor and its monetary policy actions as a central bank.

Other authorities have also taken action, notably the Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA), through prudential measures of a complementary nature which have benefitted from international coordination. Furthermore, national governments have launched very significant support programmes, including public guarantees and moratoria on payments of credit obligations.

Against this backdrop, the ECB fully supports the Commission’s initiative to increase the capacity of credit institutions to lend and to absorb losses related to the COVID-19 pandemic, while still ensuring their continued resilience (8). The targeted adjustments to Regulation (EU) No 575/2013 of the European Parliament and of the Council (9) (CRR) are welcomed, as they further increase the capacity of the banking system to mitigate the economic impact of the pandemic and support recovery, while preserving the key elements of the prudential framework. Furthermore, some elements of the proposed regulation are complementary to the mitigating supervisory measures taken by the ECB and certain measures agreed recently by the BCBS require amendments to the Union legal framework to become operational. Any further adjustments to the proposed regulation should not fundamentally alter the prudential framework, which should continue to respect agreed Basel standards and avoid further fragmentation of the European single rulebook.

As a further general observation regarding the readiness to provide loans to the economy, the ECB points to the following. If the Common Equity Tier 1 (CET1) ratio of credit institutions falls below the level of the combined buffer requirement, credit institutions can distribute resources only within the limits of the maximum distributable amount (10). If earnings turn negative, distributions are cancelled, irrespective of the size of the breach. Credit institutions might not be willing to use their buffers for additional lending due to concerns of being obliged to cancel Additional Tier 1 coupons and face the potentially negative reactions of market participants. Such behaviour would impair the intended beneficial effect of the buffer framework.

Specific observations

1.   Transitional arrangements for mitigating the impact of IFRS 9 provisions on regulatory capital

1.1.

Article 473a of CRR contains transitional arrangements allowing institutions to add back to their CET1 capital a portion of any increase in provisions due to the introduction of expected credit losses (ECL) accounting under IFRS 9. The transitional arrangements consist of two components: a static and a dynamic component. The static component allows credit institutions to partially neutralise the ‘day-one impact’ on CET1 capital of the increase in accounting provisions due to the introduction of IFRS 9. The dynamic component allows credit institutions to partially neutralise the impact of the additional (i.e. post-day-one) increase in provisions for exposures that are not credit-impaired. The existing transitional arrangements cover the period from 2018 to 2022 (11).

1.2.

On 3 April 2020, the BCBS agreed on amendments (12) to the existing transitional arrangements for the regulatory treatment of ECL in light of the COVID-19 crisis. The BCBS also clarified that jurisdictions which have already implemented the transitional arrangements (including the European Union) may choose in particular to add back less than 100 % during 2020 and 2021, or take other measures to prevent the add-back from including ECL amounts established before the outbreak of COVID-19 (13). To reflect these considerations the proposed regulation envisages resetting the 5-year transition period which started in 2018 for the dynamic component only.

1.3.

The ECB supports an amendment of Article 473a of CRR in order to allow credit institutions to add back to their CET1 capital an amount limited to the increase attributable to the dynamic component of the ECL provisions after 31 December 2019. Firstly, this solution would allow tailoring the scope of the additional measures to address the effects related to COVID-19, distinguishing them from the day-one impact that the increase in provisions had on CET1 capital due to the introduction of IFRS 9. Secondly, this solution would be fully compliant with the BCBS decision of 3 April 2020.

2.   Treatment of publicly guaranteed loans under the NPE prudential backstop

2.1.

According to Article 47c(4) of CRR, non-performing exposures (NPEs) guaranteed by official export credit agencies (ECAs) receive a preferential treatment in relation to deduction requirements under Article 47c(3) of CRR (the so-called prudential NPE backstop). In the case of NPEs guaranteed by ECAs, the part of the exposure covered by such guarantee only needs to be fully deducted after seven years in NPE status, while there is no deduction requirement before that. For all other NPEs which are secured in full or in part by qualifying collateral, minimum deduction requirements gradually increase over time until the relevant NPEs are fully covered.

2.2.

The proposed regulation envisages a temporary extension of the specific treatment of NPEs guaranteed by ECAs to NPEs guaranteed by national governments or other public entities, which are eligible as credit protection providers under the credit risk mitigation rules (14), provided that the guarantee or counter-guarantee is provided as part of support measures to assist borrowers during the COVID-19 pandemic (15).

2.3.

The ECB welcomes the proposal to temporarily extend the more beneficial treatment of Article 47c(4) of CRR to NPEs guaranteed by national government or other public entities, which is also in line with the ECB’s suggestion (16). The proposal removes an arbitrary distinction between guarantees given by different public entities with a similar credit standing.

3.   Date of application of the leverage ratio buffer

3.1.

The Group of Central Bank Governors and Heads of Supervision (GHoS) which oversees the BCBS endorsed on 27 March 2020 that the timeline for implementing the final elements of the Basel III reform be postponed by one year, including the leverage ratio buffer for global systemically important banks, which will become applicable in the Union on 1 January 2022. The proposed regulation envisages an alignment of the applicable timeline in CRR with the new timeline endorsed by the GHoS i.e. 1 January 2023 rather than 1 January 2022 (17).

3.2.

The ECB supports the decision to make use of the extended timeline agreed at international level for the finalisation of the Basel III reforms for the purposes of their transposition into Union law. Postponing the application of the leverage ratio buffer for global systemically important banks will allow credit institutions a smoother adjustment, while remaining fully consistent with the substance and timeline agreed at international level. This will enable credit institutions to focus their operational capacity on the necessary measures to address the current crisis and foster economic recovery.

4.   Offsetting the impact of excluding certain exposures from the calculation of the leverage ratio

4.1.

The final leverage ratio standard published by the BCBS in December 2017 (18) provides that, in order to facilitate the implementation of monetary policies, a jurisdiction may temporarily exempt central bank reserves from the leverage ratio exposure measure in exceptional macroeconomic circumstances. If this discretion is exercised, the Basel standards require a recalibration (i.e. an increase) of the leverage ratio requirement to offset the exclusion of central bank reserves. This discretion, which has been introduced into Union law (19), will become applicable on 28 June 2021.

4.2.

The ECB notes that the experience of the global financial crisis clearly highlighted the need for a mandatory leverage ratio requirement in Pillar 1. It is widely recognised that the build-up of excessive leverage in the banking system was an underlying cause of the global financial crisis. The ECB therefore considers it important to fully preserve the role of the leverage ratio as a credible non-risk based backstop and to avoid exclusion of its major components.

4.3.

The proposed regulation envisages a change to the recalibration mechanism as currently set out in CRR. In particular, a credit institution will be required to calculate the adjusted leverage ratio only once, on the basis of the value of the institution’s eligible central bank reserves and total exposure measure on the day when the institution’s competent authority declares that exceptional circumstances exist that warrant the exercise of the discretion. The adjusted leverage ratio will apply throughout the full period during which the discretion is exercised and will not change, unlike under the recalibration mechanism currently in force.

4.4.

The ECB welcomes the fact that the proposed regulation implements a targeted exclusion of an increase in central bank reserves, which can support a smooth implementation and transmission of monetary policy measures. The ECB notes that an increase in central bank liquidity resulting from the conduct of monetary policy will lead to an increase in the quantity of reserves held by the banking system, as is the case for the recently announced monetary policy measures in relation to the COVID-19 crisis. While individual credit institutions are able to shift these reserves around, the banking system will not be able to avoid holding these additional reserves and the accompanying increase in the leverage ratio total exposure measure. In order for the exclusion to be fully effective the ECB suggests the following modifications.

4.5.

The change to the recalibration mechanism applies from 28 June 2021. However, by the time a competent authority exercises its discretion, which could be on 28 June 2021 or a date thereafter, the amount of central bank reserves held by a credit institution could already have increased significantly owing to monetary policy measures. A recalibration based on the central bank reserves held by a credit institution on the date a competent authority exercises its discretion might not fully facilitate the implementation and effective transmission of monetary policy measures. This is because the increase in central bank reserves that these measures imply is expected to have largely occurred by that date. Therefore the exclusion of central bank reserves calculated at that date will create less capacity for banks for a potential increase in lending to the real economy. Furthermore, should there be a need to renew the exclusion at the end of the period during which the discretion is exercised (initially a maximum one-year period), the recalibration would be based on the amount of the reserves held at the renewal date, which may have further increased in the meantime. Given uncertainty over the duration of the exceptional circumstances, the recalibration mechanism may substantially impede the effectiveness of the measure in facilitating the proper implementation and transmission of monetary policy.

4.6.

Competent authorities should therefore be able to set the reference date for the recalibration so that the recalibration remains stable for the period of the exceptional circumstances. This would allow competent authorities, in consultation with central banks, to choose a date which marks the beginning of the period of exceptional circumstances, as evidenced by key monetary policy decisions (20). This would provide certainty and clarity to market participants, and would support the smooth implementation and transmission of monetary policy.

4.7.

In addition, competent authorities should be able to recalibrate on the basis of a reference period, rather than a reference date. The average amount of eligible central bank reserves over the period would then be taken into account in the recalibration. This would allow competent authorities to disregard any day-to-day variation of central bank reserves when setting the new minimum requirement for each institution.

5.   Possible further changes to certain aspects of market risk requirements

5.1.

The extraordinary levels of volatility recorded in financial markets since the outbreak of COVID-19 impact the capital requirements for market risk for institutions using the internal model approach for market risk in two ways: (a) the Value at Risk figures increase as a consequence of the observed higher volatility, and (b) the quantitative market risk multipliers reflecting the number of back-testing overshootings increase (21). These developments impact the CET1 ratios of credit institutions and might also impact credit institutions’ capacity to continue market making activities and provide market liquidity, adversely affecting the orderly functioning of the market. Moreover, an excessive increase of capital requirements for market risk would impede the objective to free up capital to support lending to the real economy.

5.2.

The BCBS standard on market risk internal models contains sufficient flexibility for competent authorities with regard to the treatment of back-testing overshootings in extraordinary circumstances (22). In particular, the BCBS standard acknowledges that even well-designed models might fail to predict unexpected high market volatility. In these extraordinary circumstances, even an accurate model might produce many exceptions in a relatively short period of time.

5.3.

While CRR does not contain an explicit reference to the extraordinary circumstances described in the BCBS text, some flexibility for the competent authority in assessing the results of the back-testing is allowed. In particular, Article 366(4) of CRR provides that the supervisor has the discretion not to count overshootings resulting from actual losses where these are driven by factors other than model deficiencies, such as extraordinary market conditions. However, CRR does not allow the competent authority to apply a similar treatment to hypothetical overshootings and disregard them for the purposes of calculating the back-testing addend. Market disruptions caused by COVID-19 are expected to influence the number of hypothetical overshootings, in a manner similar to the number of actual overshootings.

5.4.

As a result, compared to international standards, competent authorities are restricted in their available supervisory measures from achieving their objective of maintaining credit institutions’ ability to provide market liquidity and to continue market-making activities in extraordinary circumstances, which play a critical role in supporting the real economy. Additional measures, such as disregarding overshootings (resulting from both actual and hypothetical losses) in extraordinary circumstances, would better achieve this objective. Hence, CRR should be amended to ensure that, in extraordinary circumstances, competent authorities can take appropriate action, in line with the BCBS standard. For this purpose, competent authorities should be given further flexibility which would allow them to temporarily adjust the number of overshootings (resulting from both actual and hypothetical losses) or take other appropriate action. Given that the extraordinary market conditions are not linked to specific individual entities, but the whole market, it would also be important that the competent authority should exercise this power across all supervised entities with regard to their respective internal models, rather than on an individual basis. This opinion will be published on the ECB’s website.

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(1)  COM(2020) 310 final.

(2)  See blog post by Andrea Enria, Chair of the Supervisory Board of the ECB of 27 March 2020, Flexibility in supervision: how ECB Banking Supervision is contributing to fighting the economic fallout from the coronavirus, available at the ECB’s banking supervision website at www.bankingsupervision.europa.eu

See also FAQs on ECB supervisory measures in reaction to the coronavirus, available at the ECB’s banking supervision website at www.bankingsupervision.europa.eu

(3)  See ECB press release of 12 March 2020, ECB Banking Supervision provides temporary capital and operational relief in reaction to coronavirus, available at the ECB’s banking supervision website at www.bankingsupervision.europa.eu

(4)  See ECB press release of 20 March 2020, ECB Banking Supervision provides further flexibility to banks in reaction to coronavirus, available at the ECB’s banking supervision website at www.bankingsupervision.europa.eu

(5)  See ECB press release of 20 March 2020, ECB Banking Supervision provides further flexibility to banks in reaction to coronavirus, available at the ECB’s banking supervision website at www.bankingsupervision.europa.eu

(6)  See ECB press release of 16 April 2020, ECB Banking Supervision provides temporary relief for capital requirements for market risk, available at the ECB’s banking supervision website at www.bankingsupervision.europa.eu

(7)  Recommendation of the European Central Bank of 27 March 2020 on dividend distributions during the COVID-19 pandemic and repealing Recommendation ECB/2020/1 (ECB/2020/19) (OJ C 102 I, 30.3.2020, p. 1).

(8)  See section 1 of the explanatory memorandum accompanying the proposed regulation.

(9)  Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).

(10)  See Article 141 of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

(11)  See section 5 of the explanatory memorandum accompanying the proposed regulation.

(12)  See BIS press release of 3 April 2020, Basel Committee sets out additional measures to alleviate the impact of Covid-19, available at https://www.bis.org/press/p200403.htm

(13)  BCBS, Measures to reflect the impact of Covid-19, available at https://www.bis.org/bcbs/publ/d498.pdf

(14)  Letters (a) to (e) of Article 201(1) of CRR refer to (a) central governments and central banks; (b) regional governments or local authorities; (c) multilateral development banks; (d) international organisations exposures to which a 0 % risk weight under Article 117 is assigned; (e) public sector entities, claims on which are treated in accordance with Article 116.

(15)  See the proposed new Article 500a of CRR.

(16)  See FAQs on ECB supervisory measures in reaction to the coronavirus.

(17)  See proposed amendment to Article 3(5) of Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012 (OJ L 150, 7.6.2019, p. 1).

(18)  BCBS, Basel III: Finalising post-crisis reforms, p. 144, available at https://www.bis.org/bcbs/publ/d424.pdf

(19)  See paragraphs 1(n) and 7 of Article 429a of CRR as amended by Regulation (EU) 2019/876.

(20)  See ECB press release of 12 March 2020, Monetary policy decisions, available at the ECB’s website at www.ecb.europa.eu

(21)  See also EBA statement on the application of the prudential framework on targeted aspects in the area of market risk in the COVID-19 outbreak of 22 April 2020, available at the EBA’s website at www.eba.europa.eu

(22)  BCBS, MAR Calculation of RWA for market risk, paragraphs 99.65 to 99.69, available at https://www.bis.org/basel_framework/standard/MAR.htm

Notice for the attention of persons and entities subject to the restrictive measures provided for in Council Decision 2013/255/CFSP and in Council Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria

(2020/C 180/05)

The following information is brought to the attention of the persons and entities designated in Annex I to Council Decision 2013/255/CFSP (1), as amended by Council Decision (CFSP) 2020/719 (2), and in Annex II to Council Regulation (EU) No 36/2012 (3), as implemented by Council Implementing Regulation (EU) 2020/716 (4), concerning restrictive measures in view of the situation in Syria.

The Council of the European Union, after having reviewed the list of persons and entities designated in the abovementioned Annexes, has determined that the restrictive measures provided for in Decision 2013/255/CFSP and in Regulation (EU) No 36/2012 should continue to apply to those persons and entities.

The attention of the persons and entities concerned is drawn to the possibility of making an application to the competent authorities of the relevant Member State(s) as indicated on the websites in Annex III to Regulation (EU) No 36/2012, in order to obtain an authorisation to use frozen funds for basic needs or specific payments (cf. Article 16 of the Regulation).

The persons and entities concerned may submit a request to the Council before 1 March 2021, together with supporting documentation that the decision to include them on the abovementioned list should be reconsidered to the following address:

Council of the European Union

General Secretariat

RELEX.1.C

Rue de la Loi/Wetstraat 175

1048 Bruxelles/Brussel

BELGIQUE/BELGIË

Email: sanctions@consilium.europa.eu

Any observations received will be taken into account for the purpose of the Council’s next review, pursuant to Article 34 of Decision 2013/255/CFSP and Article 32(4) of Regulation (EU) No 36/2012, of the list of designated persons and entities.

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(1)  OJ L 147, 1.6.2013, p. 14.

(2)  OJ L 168, 29.5.2020, p. 66.

(3)  OJ L 16, 19.1.2012, p. 1.

(4)  OJ L 168, 29.5.2020, p. 1.

Notice for the attention of the data subjects to whom the restrictive measures provided for in Council Decision 2013/255/CFSP, as amended by Council Decision (CFSP) 2020/719 and Council Regulation (EU) No 36/2012, as implemented by Council Implementing Regulation (EU) 2020/716 concerning restrictive measures in view of the situation in Syria apply

(2020/C 180/06)

The attention of data subjects is drawn to the following information in accordance with Article 16 of Regulation (EU) 2018/1725 of the European Parliament and of the Council (1).

The legal basis for this processing operation are Council Decision 2013/255/CFSP (2), as amended by Council Decision (CFSP) 2020/719 (3), and Council Regulation (EU) No 36/2012 (4), as implemented by Council Implementing Regulation (EU) 2020/716 (5).

The controller of this processing operation is the Department RELEX.1.C in the Directorate-General for Foreign Affairs, Enlargement and Civil Protection – RELEX of the General Secretariat of the Council (GSC), that can be contacted at:

Council of the European Union

General Secretariat

RELEX.1.C

Rue de la Loi/Wetstraat 175

1048 Bruxelles/Brussel

BELGIQUE/BELGIË

Email: sanctions@consilium.europa.eu

The GSC’s Data Protection Officer can be contacted at:

Data Protection Officer

data.protection@consilium.europa.eu

The purpose of the processing operation is the establishment and updating of the list of persons subject to restrictive measures in accordance with Decision 2013/255/CFSP, as amended by Decision (CFSP) 2020/719, and Regulation (EU) No 36/2012, as implemented by Implementing Regulation (EU) 2020/716.

The data subjects are the natural persons who fulfil the listing criteria as laid down in Decision 2013/255/CFSP and Regulation (EU) No 36/2012.

The personal data collected includes data necessary for the correct identification of the person concerned, the statement of reasons and any other data related thereto.

The personal data collected may be shared as necessary with the European External Action Service and the Commission.

Without prejudice to restrictions pursuant to Article 25 of Regulation (EU) 2018/1725, the exercise of the rights of the data subjects such as the right of access, as well as the rights to rectification or to object will be answered in accordance with Regulation (EU) 2018/1725.

Personal data will be retained for 5 years from the moment the data subject has been removed from the list of persons subject to the restrictive measures or the validity of the measure has expired, or for the duration of court proceedings in the event they had been started.

Without prejudice to any judicial, administrative or non-judicial remedy, data subjects may lodge a complaint with the European Data Protection Supervisor in accordance with Regulation (EU) 2018/1725 (edps@edps.europa.eu).

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(1)  OJ L 295, 21.11.2018, p. 39.

(2)  OJ L 147, 1.6.2013, p. 14.

(3)  OJ L 168, 29.5.2020, p. 66

(4)  OJ L 16, 19.1.2012, p. 1.

(5)  OJ L 168, 29.5.2020, p. 1

Euro exchange rates (1)

28 May 2020

(2020/C 180/07)

1 euro =

	Currency	Exchange rate
USD	US dollar	1,1016
JPY	Japanese yen	118,68
DKK	Danish krone	7,4544
GBP	Pound sterling	0,89728
SEK	Swedish krona	10,5480
CHF	Swiss franc	1,0683
ISK	Iceland króna	150,80
NOK	Norwegian krone	10,8553
BGN	Bulgarian lev	1,9558
CZK	Czech koruna	27,017
HUF	Hungarian forint	349,74
PLN	Polish zloty	4,4242
RON	Romanian leu	4,8435
TRY	Turkish lira	7,5072
AUD	Australian dollar	1,6624
CAD	Canadian dollar	1,5155
HKD	Hong Kong dollar	8,5407
NZD	New Zealand dollar	1,7776
SGD	Singapore dollar	1,5621
KRW	South Korean won	1 363,76
ZAR	South African rand	19,1981
CNY	Chinese yuan renminbi	7,8804
HRK	Croatian kuna	7,5900
IDR	Indonesian rupiah	16 210,04
MYR	Malaysian ringgit	4,7980
PHP	Philippine peso	55,792
RUB	Russian rouble	77,9343
THB	Thai baht	35,108
BRL	Brazilian real	5,8495
MXN	Mexican peso	24,5580
INR	Indian rupee	83,4635

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(1)  Source: reference exchange rate published by the ECB.

Explanatory Notes to the Combined Nomenclature of the European Union

(2020/C 180/08)

Pursuant to Article 9(1)(a) of Council Regulation (EEC) No 2658/87 (1), the Explanatory Notes to the Combined Nomenclature of the European Union (2) are hereby amended as follows:

On page 59, after the Explanatory Note to CN subheading ‘0811 20 51 Redcurrants’ , the following paragraph is inserted:

On page 93, after the Explanatory Note to CN subheading ‘2008 30 51 Grapefruit segments, including pomelos’ , the following paragraph is inserted:

On page 93, after the Explanatory Note to CN subheading ‘2008 30 71 Grapefruit segments, including pomelos’ , the following paragraph is inserted:

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(1)  Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).

(2)  OJ C 119, 29.3.2019, p. 1.

Explanatory Notes to the Combined Nomenclature of the European Union

(2020/C 180/09)

Pursuant to Article 9(1)(a) of Council Regulation (EEC) No 2658/87 (1), the Explanatory Notes to the Combined Nomenclature of the European Union (2) are hereby amended as follows:

On page 102, between the Explanatory Note to CN heading ‘2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages’ and before the Explanatory Note to CN subheadings ‘2208 30 11 to 2208 30 88 Whiskies’ , the following paragraph is inserted:

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(1)  Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).

(2)  OJ C 119, 29.3.2019, p. 1.

Prior notification of a concentration

(Case M.9619 – CDC/EDF/ENGIE/La Poste)

(Text with EEA relevance)

(2020/C 180/10)

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(1)  OJ L 24, 29.1.2004, p. 1 (the ‘Merger Regulation’).

Prior notification of a concentration

(Case M.9759 – Nexi/Intesa Sanpaolo (Merchant acquiring business))

(Text with EEA relevance)

(2020/C 180/11)

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(1)  OJ L 24, 29.1.2004, p. 1 (the ‘Merger Regulation’).

Publication of the amended single document following the approval of a minor amendment pursuant to the second subparagraph of Article 53(2) of Regulation (EU) No 1151/2012

(2020/C 180/12)

The European Commission has approved this minor amendment in accordance with the third subparagraph of Article 6(2) of Commission Delegated Regulation (EU) No 664/2014 (1).

The application for approval of this minor amendment can be consulted in the Commission’s eAmbrosia database.

SINGLE DOCUMENT

‘EMMENTAL DE SAVOIE’

EU No: PGI-FR-0179-AM03 – 10.1.2020

PDO ( ) PGI (X)

1.   Name(s)

‘Emmental de Savoie’

2.   Member State or Third Country

France

3.   Description of the agricultural product or foodstuff

3.1.   Type of product

Class 1.3. Cheeses

3.2.   Description of product to which the name in (1) applies

‘Emmental de Savoie’ is a cooked pressed cheese made from cow's milk used in its raw state.

It has a regular, wheel-like shape and a diameter ranging from 72 to 80 cm. It is more or less convex and has no edges or projecting parts. Its height varies from 14 cm (minimum vertical height at the outer rim) to 32 cm (maximum vertical height at the highest point). The wheel must weigh at least 60 kg after maturation.

The finished product has a fat content of at least 28 %. The total dry extract, measured on a rindless part, is at least 62 % on the 75th day.

It has a maximum salt content of 0,4 grams for 100 grams of cheese.

Its rind is yellowish brown in colour, without any spots or blemishes. The openings in the paste (also called ‘eyes’) are well-defined, regular, apart from one another and evenly distributed. Their size varies from the size of a small cherry to that of a walnut.

‘Emmental de Savoie’ has a clean, fruity taste. Its firm and supple paste has a homogeneous colour.

‘Emmental de Savoie’ is sold in the following formats:

—	as a round wheel or portion of a wheel;

—	cut or in prepackaged units for sale to the consumer: in the form of bars, slices or portions of a wheel, grated or diced.

3.3.   Feed (for products of animal origin only) and raw materials (for processed products only)

The different types of authorised feed are:

—	coarse fodder (grass, hay, second-cut hay, green maize, sorghum, straw, catch crops);

—	corn cob and wet grain maize, permitted only between 1 October and 1 May;

—	dehydrated fodder, dehydrated lucerne, dehydrated beetroot pulp, fodder beet, which must be fed in a clean and healthy condition;

—

the following complementary feed and additives: — cereal grains and products derived from them (bran, sharps, flour, dehydrated distilling dregs); — seeds, oilseed and protein cakes; — byproducts: lucerne protein concentrate, non-protein nitrogen (byproducts of starch or yeast production), urea < 3 % in complementary feed; — molasses and vegetable oil, minerals, vitamins, trace elements and natural plant extracts.

For lactating cows:

—	100 % of the coarse fodder comes from the geographical area;

—	Dehydrated fodder, corn cob, dehydrated grain maize and fodder beet from outside the geographical area is limited to 4 kg of dry matter per lactating cow as a daily average throughout the year.

These restrictions guarantee that the majority of the dry material consumed by the dairy cows comes from the defined geographical area. They therefore improve the link between the product and its geographical origin.

At the processor’s premises the milk collected for producing ‘Emmental de Savoie’ comes from a herd of dairy cows at least 75 % of which consists of cows from the Abondance, Montbéliarde or Tarentaise breeds.

Maintaining the tradition of farming the traditional Abondance, Montbéliarde and Tarentaise breeds is justified because they have demonstrated their ability to adapt to the physical and climatic constraints of the environment: body type adapted to grazing on sloping pastures, heat tolerance, capacity for grazing in the summer and dry fodder in the winter.

3.4.   Specific steps in production that must take place in the defined geographical area

The milk production, collection, processing and maturing take place in the geographical area.

The production of milk intended for the production of ‘Emmental de Savoie’ in the geographical area is justified by the considerable fodder resources in the area, which are used in the production of cheeses.

3.5.   Specific rules concerning slicing, grating, packaging, etc. of the product the registered name refers to

—

3.6.   Specific rules concerning labelling of the product the registered name refers to

All cheeses with the protected geographical indication ‘Emmental de Savoie’ must comply with the following rules:

—	the name ‘Emmental de Savoie’ must be specified on all packaging with the European Union’s PGI symbol in the same field of vision;

—	the manufacturer or ripener or packager must indicate their name and address;

—	the name of the certifying body must be provided;

—	there must be a reference to the geographical origin on one side or on the outer rim of the wheel (except when the cheese has been ‘diced’ or ‘grated’).

4.   Concise definition of the geographical area

The geographical area of ‘Emmental de Savoie’ comprises the following municipalities:

Department of Haute-Savoie

Alby-sur-Chéran, Alex, Allèves, Allinges, Allonzier-la-Caille, Amancy, Ambilly, Andilly, Annecy, , Annemasse, Anthy-sur-Léman, Arbusigny, Archamps, Arenthon, Argonay, Armoy, Arthaz-Pont-Notre-Dame, Ayse, Ballaison, Balme-de-Sillingy (La), Balme-de-Thuy (La), Bassy, Beaumont, Bellevaux, Bernex, Bloye, Bluffy, Boëge, Bogève, Bonne, Bonneville, Bons-en-Chablais, Bossey, Bouchet-Mont-Charvin (Le), Boussy, Brenthonne, Brizon, Burdignin, Cercier, Cernex, Cervens, Chainaz-les-Frasses, Challonges, Champanges, Chapeiry, Chapelle-Rambaud (La), Chapelle-Saint-Maurice (La), Charvonnex, Châtillon-sur-Cluses, Chaumont, Chavannaz, Chavanod, Chêne-en-Semine, Chênex, Chens-sur-Léman, Chessenaz, Chevaline, Chevrier, Chilly, Choisy, Clarafond-Arcine, Clefs (Les), Clermont, Clusaz (La), Cluses, Collonges-sous-Salève, Contamine-Sarzin, Contamine-sur-Arve, Copponex, Cornier, Cranves-Sales, Crempigny-Bonneguête, Cruseilles, Cusy, Cuvat, Desingy, Dingy-en-Vuache, Dingy-Saint-Clair, Doussard, Douvaine, Draillant, Droisy, Duingt, Éloise, Entrevernes, Épagny-Metz-Tessy, Etaux, Étercy, Étrembières, Évian-les-Bains, Excenevex, Faucigny, Faverges-Seythenex, Feigères, Fessy, Féternes, Fillière, Fillinges, Franclens, Frangy, Gaillard, Giez, Glières-Val-de-Borne, Grand-Bornand (Le), Groisy, Gruffy, Habère-Lullin, Habère-Poche, Hauteville-sur-Fier, Héry-sur-Alby, Jonzier-Épagny, Juvigny, Larringes, Lathuile, Leschaux, Loisin, Lornay, Lovagny, Lucinges, Lugrin, Lullin, Lully, Lyaud (Le), Machilly, Magland, Manigod, Marcellaz, Marcellaz-Albanais, Margencel, Marignier, Marigny-Saint-Marcel, Marin, Marlioz, Marnaz, Massingy, Massongy, Maxilly-sur-Léman, Mégevette, Meillerie, Menthon-Saint-Bernard, Menthonnex-en-Bornes, Menthonnex-sous-Clermont, Mésigny, Messery, Mieussy, Minzier, Monnetier-Mornex, Mont-Saxonnex, Montagny-les-Lanches, Moye, Muraz (La), Mûres, Musièges, Nancy-sur-Cluses, Nangy, Nâves-Parmelan, Nernier, Neuvecelle, Neydens, Nonglard, Novel, Onnion, Orcier, Peillonnex, Perrignier, Pers-Jussy, Poisy, Présilly, Publier, Quintal, Reignier-Ésery, Reposoir (Le), Reyvroz, Rivière-Enverse (La), Roche-sur-Foron (La), Rumilly, Saint-André-de-Boëge, Saint-Blaise, Saint-Cergues, Saint-Eusèbe, Saint-Eustache, Saint-Félix, Saint-Ferréol, Saint-Germain-sur-Rhône, Saint-Gingolph, Saint-Jean-de-Sixt, Saint-Jean-de-Tholome, Saint-Jeoire, Saint-Jorioz, Saint-Julien-en-Genevois, Saint-Laurent, Saint-Paul-en-Chablais, Saint-Pierre-en-Faucigny, Saint-Sigismond, Saint-Sixt, Saint-Sylvestre, Sâles, Sallenôves, Sappey (Le), Savigny, Saxel, Scientrier, Sciez, Scionzier, Serraval, Sévrier, Seyssel, Sillingy, Talloires-Montmin, Taninges, Thollon-les-Mémises, Thônes, Thonon-les-Bains, Thusy, Thyez, Tour (La), Usinens, Vailly, Val-de-Chaise, Valleiry, Vallières-sur-Fier, Vanzy, Vaulx, Veigy-Foncenex, Vers, Versonnex, Vétraz-Monthoux, Veyrier-du-Lac, Villard, Villards-sur-Thônes (Les), Villaz, Ville-en-Sallaz, Ville-la-Grand, Villy-le-Bouveret, Villy-le-Pelloux, Vinzier, Viry, Viuz-en-Sallaz, Viuz-la-Chiésaz, Vougy, Vovray-en-Bornes, Vulbens, Yvoire.

Department of Savoie

Aiguebelette-le-Lac, Aiguebelle, Aillon-le-Jeune, Aillon-le-Vieux, Aiton, Aix-les-Bains, Albens, Albertville, Allondaz, Apremont, Arbin, Argentine, Arith, Arvillard, Attignat-Oncin, Avressieux, Ayn, Balme (La), Barberaz, Barby, Bassens, Bâthie (La), Bauche (La), Bellecombe-en-Bauges, Belmont-Tramonet, Betton-Bettonet, Billième, Biolle (La), Bonvillard, Bonvillaret, Bourdeau, Bourget-du-Lac (Le), Bourget-en-Huile, Bourgneuf, Bridoire (La), Brison-Saint-Innocent, Césarches, Cessens, Cevins, Challes-les-Eaux, Chambéry, Chamousset, Chamoux-sur-Gelon, Champagneux, Champ-Laurent, Chanaz, Chapelle-Blanche (La), Chapelle-du-Mont-du-Chat (La), Chapelle-Saint-Martin (La), Châteauneuf, Châtelard (Le), Chavanne (La), Chignin, Chindrieux, Cléry, Cognin, Cohennoz, Coise-Saint-Jean-Pied-Gauthier, Compôte (La), Conjux, Corbel, Crest-Voland, Croix-de-la-Rochette (La), Cruet, Curienne, Déserts (Les), Détrier, Domessin, Doucy-en-Bauges, Drumettaz-Clarafond, Dullin, Échelles (Les), École, Entremont-le-Vieux, Épersy, Épierre, Esserts-Blay, Étable, Flumet, Francin, Fréterive, Frontenex, Gerbaix, Giettaz (La), Gilly-sur-Isère, Gresin, Grésy-sur-Aix, Grésy-sur-Isère, Grignon, Hauteville, Jacob-Bellecombette, Jarsy, Jongieux, Laissaud, Lépin-le-Lac, Lescheraines, Loisieux, Lucey, Marches (Les), Marcieux, Marthod, Mercury, Méry, Meyrieux-Trouet, Mognard, Mollettes (Les), Montagnole, Montailleur, Montcel (Le), Montendry, Montgilbert, Monthion, Montmélian, Montsapey, Motte-en-Bauges (La), Motte-Servolex (La), Motz, Mouxy, Myans, Nances, Notre-Dame-de-Bellecombe, Notre-Dame-des-Millières, Novalaise, Noyer (Le), Ontex, Pallud, Planaise, Plancherine, Pont-de-Beauvoisin (Le), Pontet (Le), Presle, Pugny-Chatenod, Puygros, Randens, Ravoire (La), Rochefort, Rochette (La), Rognaix, Rotherens, Ruffieux, Saint-Alban-de-Montbel, Saint-Alban-des-Hurtières, Saint-Alban-Leysse, Saint-Baldoph, Saint-Béron, Saint-Cassin, Saint-Christophe, Saint-Franc, Saint-François-de-Sales, Saint-Genix-sur-Guiers, Saint-Georges-des-Hurtières, Saint-Germain-la-Chambotte, Saint-Girod, Sainte-Hélène-du-Lac, Sainte-Hélène-sur-Isère, Saint-Jean-d’Arvey, Saint-Jean-de-Chevelu, Saint-Jean-de-Couz, Saint-Jean-de-la-Porte, Saint-Jeoire-Prieuré, Saint-Léger, Saint-Marcel, Sainte-Marie-d’Alvey, Saint-Maurice-de-Rotherens, Saint-Nicolas-la-Chapelle, Saint-Offenge-Dessous, Saint-Offenge-Dessus, Saint-Ours, Saint-Paul-sur-Isère, Saint-Paul, Saint-Pierre-d’Albigny, Saint-Pierre-d’Alvey, Saint-Pierre-de-Belleville, Saint-Pierre-de-Curtille, Saint-Pierre-d’Entremont, Saint-Pierre-de-Genebroz, Saint-Pierre-de-Soucy, Sainte-Reine, Saint-Sulpice, Saint-Thibaud-de-Couz, Saint-Vital, Serrières-en-Chautagne, Sonnaz, Table (La), Thénésol, Thoiry, Thuile (La), Tournon, Tours-en-Savoie, Traize, Tresserve, Trévignin, Trinité (La), Ugine, Venthon, Verel-de-Montbel, Verel-Pragondran, Verneil (Le), Verrens-Arvey, Verthemex, Villard-d’Héry, Villard-Léger, Villard-Sallet, Villaroux, Vimines, Vions, Viviers-du-Lac, Voglans, Yenne.

Department of Ain

Anglefort, Béon, Billiat, Ceyzérieu, Chanay, Corbonod, Cressin-Rochefort, Culoz, Flaxieu, Injoux-Génissiat, Lavours, Léaz, Massignieu-de-Rives, Parves et Nattages, Pollieu, Saint-Martin-de-Bavel, Seyssel, Surjoux-Lhôpital, Talissieu, Valserhône, Villes, Virignin, Vongnes.

Department of Isère

Entre-deux-Guiers, Miribel-les-Échelles, Saint-Christophe-sur-Guiers, Saint-Pierre-de-Chartreuse, Saint-Pierre d’Entremont.

5.   Link with the geographical area

The link to the origin of ‘Emmental de Savoie’ is based on its established quality.

In topographical and geological terms, the geographical area for ‘Emmental de Savoie’ is quite diverse. The terrain mostly ranges between 200 metres to 1 500 metres in altitude, peaking in a few areas to 2 200 metres. This landscape makes up the sub-Alpine region and does not stretch to the high mountains.

The soils of the geographical area mostly rest on Quaternary deposits and molassic deposits from the Tertiary. They are generally deep and well drained, allowing the cultivation of cereals such as maize.

The particularity of this territory is that its average annual rainfall exceeds 900 mm of water per year. It rarely exceeds 2 000 mm a year, except on the highest peaks. Overall this territory receives more rainfall than the national average of 900 mm. This characteristic of the geographical area, together with the richness of the soils, contributes to good crop growth in general.

The geographical area's soil composition and rainfall make it prime territory for high-quality grass. Both the hay meadows and pastures have a rich and diversified flora, typical of the Alpine mountain area.

‘Emmental de Savoie’ is part of the history of cooked pressed cheeses, and its development is closely linked to that of cheesemaking chalets. Only these chalets, which brought together large amounts of milk, were in a position to start producing ‘Emmental de Savoie’ very early on.

This cheese, available throughout the year, was an important source of income, which explains why it was prioritised over other cheeses. Until the 1980s it accounted for most cheese production in the Savoie region. That was the case back in 1955, as described by H. Tournebise (‘Les fromages savoyards’, in ‘La France à table’, Savoie No 57, p. 80). : ‘The large area covered by Emmental cheese — a type of Gruyère produced exclusively in this region — extends to the valleys and the submountain region’ (‘La grande zone de l'extension de l’emmenthal, type de gruyère uniquement fabriqué dans cette région, occupe les vallées et l'avant-pays’).

Since it is difficult to master the production of ‘Emmental de Savoie’, the growth in its production also depended on the introduction of milking machines and equipment to cool the milk and the practice of seeding with natural cultures.

Thus the geographical area of ‘Emmental de Savoie’ covers this sub-Alpine region, home today to both milk production and the cheese-production facilities. The extensive northern Alpine mountain ranges do not have any farms supplying milk for the production of ‘Emmental de Savoie’, since they are historically associated with other cheeses.

The production of milk intended for the production of ‘Emmental de Savoie’ is still based on the wide availability of grass in the geographical area and also on the continued tradition of raising the traditional breeds: Abondance, Montbéliarde and Tarentaise. These breeds have demonstrated their ability to adjust to the physical and climatic constraints of the environment: body type adapted to grazing on sloping pastures, heat tolerance, capacity for grazing in the summer and dry fodder in the winter. The dairy cows’ feed is based on the use of fodder and cereals produced mainly in the geographical area.

‘Emmental de Savoie’ is a cooked pressed cheese made from cow's milk used in its raw state.

It has a regular, wheel-like shape and a diameter ranging from 72 to 80 cm. The wheel must weigh at least 60 kg after maturation.

Its rind is yellowish brown in colour.

‘Emmental de Savoie’ is characterised by a firm and supple paste with openings called ‘eyes’ that are well defined, regular and evenly distributed throughout the cheese, with a size ranging from a small cherry to a walnut. It has a clean, fruity taste.

‘Emmental de Savoie’ is made solely from raw milk, which perfectly reflects the typical characteristics of the milk and, more widely, the territory. This interaction is based essentially on the feed given to the dairy cows, with the coarse fodder coming exclusively from the geographical area of the PGI.

The systems for farming dairy herds prioritise the use of the great variety of local fodder resources available in the geographical area. Milk production in the geographical area promotes the optimum use of grazing resources in line with ancestral practices and the use of the milk obtained from traditional breeds. This milk, produced in large quantities thanks to a specific diet, is better suited to production of this cheese than that of other breeds raised in the same conditions and displays the following particular features: the curd obtained after adding the rennet is firmer and the cheese yield greater.

Production practices have led to the selection of the appropriate flora for production. Thanks to the work conducted since 2000, the group can provide the operators with the references of the specific culture strains used to make ‘Emmental de Savoie’. One of the characteristics of ‘Emmental de Savoie’ relates to the high level of protein breakdown. This may be due to the proteasic activity, the raw milk’s natural flora, the natural starters and the systematically used thermophilic lactobacilli. The cheese's peptide profile is actually different from that of thermised French Emmental.

Owing to this specific feature, ‘Emmental de Savoie’ has a supple paste with a clean, fruity taste beneath a solid rind.

As a result of being kept in a warm cellar for 21 days, the cheese develops specific openings caused by the controlled release of propionic acid.

The link between ‘Emmental de Savoie’ and its geographic origin is closely related to the development of cheesemaking chalets, which are also the reason for its characteristic large size.

Reference to publication of the specification

(the second subparagraph of Article 6(1) of this Regulation)

https://info.agriculture.gouv.fr/gedei/site/bo-agri/document_administratif-75d760a0-c997-4572-a852-4b6368fdd761

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(1)  OJ L 179, 19.6.2014, p. 17.